Global rating agencies

There are a lot of various rating agencies in the world. As a rule, they are all private independent organizations. The crux of suchlike organizations is to assess solvency, debt instruments, market value, quality of asset management, and other important indicators of a company. Besides, based on this data the agencies rate the companies with the credit worthiness grades. Usually, the marking system is letter-based. For instance, the highest rating is AAA. Then the classification goes in the descending order: AA, A, BBB, etc. The lowest level is marked with the letter D and means “default” – inability of a company to repay a given debt. Those business corporations that retain the highest ratings from AAA to BBB are considered to be investment profitable, whereas lower rating reflects the risk of non-payment of a debt obligation. As a result, such a company has to pay out higher interest on loans.

Moreover, the rating agencies can give an outlook of 3 types:

Positive – in case some positive shifts are expected contributing to the rating’s increase.

Stable – the possibility of negative effects is low, rating does not change.

Negative – there is a high probability of negative changes.

There are more than 100 rating agencies around the world that assign national and global ratings to the companies. Here is a brief description and basic assessment criteria of three most authoritative rating agencies in the world:

Fitch Ratings is dual-headquartered in New York and London, has more than 50 offices around the globe.

Moody’s. The USA, Boston. More than 4,500 experts from 26 countries work at the agency.

Web-portal Administration warns you that the data provided by Forex companies are for informational purposes only. www.ratingfx.com team is not responsible for the loss of customer funds when trading on Forex through the use of information contained in this resource.